How the SNP plans to help first-time buyers

First Minister Nicola Sturgeon has announced a bold new initiative to help struggling first-time buyers navigate the housing market.

Later this year the Scottish Government will release £150m to support first-time house buyers with their deposits. Once buyers have saved 5% of the value of their new home, the Scottish Government will offer loans of up to £25,000 to fund or top up their deposit.

The First Minister also announced plans to regulate short-term lets in a bid to save housing stock in tourist hot spots such as central Edinburgh and the Isle of Arran.

First Minister Nicola Sturgeon said:

“We want to help people find places to live in the communities they want to call home.

“Some first time buyers trying to get onto the property ladder can call on the financial help of relatives or friends – the famous bank of mum and dad. But for too many, the simple truth is that, even on decent incomes, saving for a deposit takes so long it has become a distant dream.

“Many are even paying more in rent than they would pay for a mortgage and the simple fact is they don’t have the money left at the end of the month to save for a deposit.

“In a fair and equitable country that cannot stand. And so we will act. We will help young people with the deposits they need.

“If buyers can find just 5% of the value of their new house from their own funds, we will do the rest. Starting later this year we will pilot a scheme to offer first-time buyers loans of up to £25,000 to fund or top up their deposit.”

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“For many people, short-term lets have enabled cheaper, more flexible travel. It’s one of the reasons Scotland’s tourism industry is booming. But for others – particularly in tourist hot spots – it is making it harder to find homes to live in.

“We are asking for views on a new system of regulation to make short term lets subject to the same controls as other accommodation. And give councils the power to control the number of lets and ensure they make a contribution to the services they use.”

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“We understand the need in some parts of the country for new controls over short-term letting of residential properties and we believe there is a case to take action.

“We are committed to working with local authorities to allow them to balance the unique needs of their communities with wider economic and tourism interests.

“As part of identifying the best solution we want to ask communities, landlords, local authorities and businesses across Scotland how councils can best use their planning, health and safety and regulatory powers to support local communities, whether further powers are required – and how we can ensure that short term lets are making an appropriate contribution to local services.

“We will also conduct further research to explore the direct effects of short-term lets on communities, neighbourhoods and housing supply across Scotland.”